In state legislative races, Democrats maintained their firm grip on both the Senate and Assembly.Republicans, however, may have picked up one seat in the Senate where term-limited Assemblywoman Lynn Daucher broadened her narrow 13 vote lead over former Assemblyman Lou Correa to 553 votes.This hotly contested races to fill the seat of outgoing Senator Joe Dunn in Senate District 34, witnessed a combined total of nearly $4.0 million spent by the candidates and state party organizations.

Looking ahead to the next couple years, the Senate will become less liberal as Democrat moderates move from the Assembly to the Senate.However, the loss of moderates in the Assembly and the influx of more liberal freshman will predictably move the Assembly further away from a pro-business agenda.Undoubtedly, the Senate will figure more prominently in business lobbying strategies during the next legislative session.[Read More]

In the State's U.S. Senate and Congressional contests, Diane Feinstein was an easy victor over Richard "Dick" Mountjoy, but six-term Congressman Richard Pombo (R, Tracy), Chairman of the House Resources Committee, was not as fortunate.Pombo was defeated by Jerry McNerney in the race for the 11th Congressional District.At issue was Pombo's staunch opposition to the Endangered Species Act over which his Resources Committee has jurisdiction.

In other actions, the Schwarzenegger backed bond measures 1a thru 1e were successfully passed but most ballot measures, including Prop 87 which would have taxed California crude oil to pay for alternate energy development, went down to defeat.